The mutual fund “Index UX” (KUBI) is the stock market instrument, which
combines the best features of mutual funds and stocks. The idea of “Index UX” is
to follow the dynamics of Ukrainian Exchange Index. This allows investor to buy
a portfolio of securities included in the Index with just one operation. The
purchase of investment certificate is always a low cost operation, which reduces
investor’s risk through diversification. In its essence, mutual fund “Index UX”
is the analogue of ETF (Exchange Traded Fund) - funds with securities that are
traded on the stock exchange, which enable investors to buy and sell them within
one trading session.

Recent trends indicate that exchange traded funds are getting very popular
among investors around the world. And it is not surprising, since ETFs have many
advantages compared to usual mutual funds. According to official estimates,
about one-third of the trade volume in the U.S. accounts for transactions with
exchange traded funds – that is 1.3 trillion dollars of assets.

Characteristics of instrument:

• Diversification. By making only one transaction, the investor
becomes the owner of the entire portfolio of securities, included in Ukrainian
Exchange Index.

• Transparency. The index composition is always known, which means
that the fund’s portfolio is absolutely transparent.

• Reliability. “Index UX” is the collective investment institution,
which is strictly controlled by the State.

• Easy to use. It is possible to buy and sell the exchange traded
fund’s certificates at any time from any trading platform. By purchasing
certificate, investor actually buys “market portfolio”.

• Low cost. The fund can be purchased quickly, easily and with minimal
expenses.

• Liquidity. Certificates can be easily traded on stock exchange as
common stock, even intraday.

• Variety of strategies. ETF’s certificate can be used in any stock
exchange operations, e.g. short selling or trading on leverage. Besides,
investment into exchange traded fund allows building different individual
investment and trading strategies.